Regional economic report - Bank of the Japan shows that seven of the nine local areas upgrade their economic point of view
-Many regions see positive signs dans key sectors, such as consumption and production expenses
-Japan North, hit hard by March 11 earthquake, explains normalizing economic activities
(Adds details of Sakura report at paragraphs 5-8)
TOKYO-(Dow Jones)-l' Japanese economy recovers quickly from the impact of the earthquake on March 11 and tsunami, a...
Lisbon (AFP) - the new centre-right of the Portugal Government promised Tuesday to go beyond the objectives of austerity agreed in its EU - IMF rescue plan, sacrificing the completion of a high speed train linking with the Spain.
Suspend the construction of the rail link Lisbon-Madrid high speed that was scheduled to be completed by 2013, as part of a four year program Government submitted to Parliament for approval.
The Portuguese Prime Minister Pedro Passos Coelho promised Government of "scrupulously apply the measures negotiated with the Monetary Fund International and the European Union," but said he wants to be "more ambitious in the process of adjustment to the Portuguese economy.
This was to "guard against external and internal potential," said a Government document detailing the plan.
Bailout Lisbon, Portugal ($112 billion) of EUR 78 billion to implement stringent financial control measures, to introduce reforms and sell property of the State to improve the weak structure of the economy.
The country must press its public deficit of 9.1% of the domestic product gross year last three percent in 2013.
There were growing concerns that a Greek default could spread a new wave of contagion throughout the euro area, further damage weaker economies such as the Portugal.
"Complementary measures of a structural nature" will be adopted if necessary "to ensure respect and achievement targets early which is linked to the country and restore international confidence in its economy, also" promised in the Government.
The Government program, due to be debated by legislators, on Thursday and Friday, announced it would "suspend" construction of the high-speed rail project.
This could be revisited at a later stage, for a possible renegotiation of the contract, the document said.
The contract for the first section of the line of Madrid was signed in May 2010, while the process of tendering for a second section was never completed.
The project was to reduce the travel time between the two capitals within three hours and bind the Portugal to the railway network at high speed in Europe, at a cost of EUR 3.3 billion to Lisbon.
The Minister of transport of the Spain, Madrid, Jose Blanco, said that if the suspension is approved, it would be "a bad decision" while adding that he also wanted clarification if it would be a temporary or permanent stay in the project.
The rail link was a flagship project of former Socialist Prime Minister José Socrates, but the centre-right long called for him to be delayed to reduce the debt of the country, reaching 93% of GDP in the last year.
The new Government also pledged to reconsider the construction of a new airport for Lisbon, which was to be completed by 2017.
It is committed to expanding the privatization of media held the State to include the sale of a string of television, radio and press agency Lusa.
The Government also promised reforms of the labour market to eliminate all fixed-term employment contracts by simplifying the regulations for employers to put an end to new recruits.
It is committed to implement existing laws and to create an independent authority to monitor expenditures.
But this rate was supposed to be temporary - economic stimulus emergency for a real emergency and a way to keep afloat banks by sabré in their cost money, especially for the deposits of savers.
Two years later, the emergency of the financial system has elapsed. Bank failures continue to increase, but the survivors make lots of money. Banking net income totaled $ 53.6 billion in the first nine months of this year, up sharply from $ 3.2 billion during the same period in 2009, according to the Federal Deposit Insurance Corporation.
Banks have clearly that many people try to do the right thing for their financial health by registering the most. National filings increased record 7.74 trillions of dollars at the end of the third quarter, 7% higher than the level two years earlier.
In contrast, the interest that banks paid on these deposits amounted to only $ 14.5 billion last quarter, 57 per cent less than what they put into the pockets of savers during the same period in 2008, as the credit crunch was deepening.
Last year, banks have continued to reduce the rate of overall deposit. The average annualized return on a six-month filing certificate was a mere 0.45% this week at the bottom of 0.82% last year, according to research Calabasas information services.
Even if you agree that the low interest rates were necessary to avoid economic collapse, the question now is how long this extreme sleep - or, more broadly, Eve economy grant - get banks grant.
It ends only when the Fed accepts, because Central Bank directly controls the short-term rate. When it votes to raise awareness, deposit rates will follow.
It is, of course, much more at stake here than interest income just savers. When the Federal Reserve decided finally to raise rates, it will be endorsing the idea that the economy is on a path to a semblance of normality.
But officially Fed makers showing no sign of moves their policy rates near zero, despite rising signs indicating that the economic recovery is picking up speed.
To the instruction following their last meeting 2010 Tuesday, they reiterated that they expected to keep rates at "exceptionally low levels... over an extended period."
How long "extended" is? Now, many economists believe the Fed boost rates in the short term before 2012. Some see no movement before 2013.
Ethan Harris, who leads developed markets economic research at the Bank of America Merrill Lynch in New York, expected first Fed rate hike in the fourth quarter of 2012 - complete two years later.
He noted that the Chairman of the Fed s. Ben Bernanke made clear that the Central Bank now wishes 9.8% unemployment rate, a significant decline. Before the start of the US Federal Reserve note is ready to raise rates, "They vas need to see the rate fall below 9% or maybe 8.5%," Harris said. This, he said, won't happen any time soon.
For Bernanke, then holding short-term almost from zero rates is no longer a Bank emergency, but emergency employment.
But also raises the question: is low rate really necessary for employment growth happen at this stage of recovery?
John Silvia, Wells Fargo securities of Charlotte, N.C., Chief Economist makes the case that credit costs are generally not a problem for many companies trying to decide whether to rent.
"It is more a question of companies are more confident about the final demand" for their products or services, he said.
